Negative rate proves that banks do not care about making profit by customer deposit, but focus on printing money and loan them out. Don't know how long this business will continue, but it will take many years before people escape fiat money at large scale
Topic: US Dollar collapse in 2015? - page 2. (Read 3991 times)
Low rates will trigger unrest as central banks lose control - BIS
Bank for International Settlements warns that low rates risk backlash as effects spill over into the real economy
Low inflation, bond yields and interest rates around the world will push the boundaries of economic and political stability to breaking point if they continue on their downward trajectory, the Bank for International Settlements has warned.
The Swiss-based "bank of central banks" said the "sinking trend" of global rates would push countries further into uncharted territory.
It highlighted that $2.4 trillion (£1.6 trillion) of long-term global sovereign debt was now trading at negative yields, with an increasing number of investors willing to pay governments for the privilege of lending to them.
"As bond markets show us day after day, the boundaries of the unthinkable are exceptionally elastic," said Claudio Borio, head of the Monetary and Economic department at the BIS.
"The consequences should be watched closely, as the repercussions are bound to be significant."
http://www.telegraph.co.uk/finance/economics/11479425/Low-rates-will-trigger-civil-unrest-as-central-banks-lose-control-BIS.html
Bank for International Settlements warns that low rates risk backlash as effects spill over into the real economy
Low inflation, bond yields and interest rates around the world will push the boundaries of economic and political stability to breaking point if they continue on their downward trajectory, the Bank for International Settlements has warned.
The Swiss-based "bank of central banks" said the "sinking trend" of global rates would push countries further into uncharted territory.
It highlighted that $2.4 trillion (£1.6 trillion) of long-term global sovereign debt was now trading at negative yields, with an increasing number of investors willing to pay governments for the privilege of lending to them.
"As bond markets show us day after day, the boundaries of the unthinkable are exceptionally elastic," said Claudio Borio, head of the Monetary and Economic department at the BIS.
"The consequences should be watched closely, as the repercussions are bound to be significant."
http://www.telegraph.co.uk/finance/economics/11479425/Low-rates-will-trigger-civil-unrest-as-central-banks-lose-control-BIS.html
Pretty amazing, huh ? The dollar totally mauled the rest but has been retreating a bit lately. Not sure if the rally can be called off yet, we´ll see.
I don't think that it will totaly colapse, they will save it
I don't want the dollar to collapse. Would you like a world where the strongest currency would be Chinese?
Voted no, I don't think it will happend, atleast not in my lifetime. Maybe I have the dangerous mindset of 'it is too big to fail' but I am more inclined to believe we will see the Euro collapse long before the USD does.
What a joke...don't you know that it is actually the Immortal Dollar?
It will never die!!!
The US Dollar is the backbone of this planet.
It's not going anywhere...it's staying right here.
It will never die!!!
The US Dollar is the backbone of this planet.
It's not going anywhere...it's staying right here.
there is a chance that the euro might collapse first, seeing the recent trend, dollar seems strongher, i voted no
I agree. Europe need so much oil. A weak euro is not good for Europe.
Well it is good for export.
Right, and the strong dollar is terrible for U.S. exports. Also the higher the greenback the fewer dollars U.S. multinationals (which lead the stock market) get to book as revenue and profits back home. Which has to hit the stock market sooner or later unless it doesn´t really believe that the dollar´s strength will last for long.
The US exports consist of debt, so the higher the dollar the more they will be able to export their debt (since people across the world would value the US dollar dearer). The US international corporations trade in local currency, though their prices are still mostly bound to the US dollar exchange rate, thus their revenue stream may decline due to competition, but the degree of this decline remains to be seen...
The accounts they send the SEC and the market are squared in dollars so the higher the dollar the less worth in dollars their foreign revenue has to be on the books back home in the U.S.. Unless they have some cookery to cover that. Remember; a rising dollar imports deflation into the U.S.
I guess this will be offset by the corresponding stock market growth. Regarding deflation, the remedy is well known and tested in years (quantitative easing). The fact that it will support stock markets as well is also acknowledged and confirmed many times by now...
there is a chance that the euro might collapse first, seeing the recent trend, dollar seems strongher, i voted no
I agree. Europe need so much oil. A weak euro is not good for Europe.
Well it is good for export.
Right, and the strong dollar is terrible for U.S. exports. Also the higher the greenback the fewer dollars U.S. multinationals (which lead the stock market) get to book as revenue and profits back home. Which has to hit the stock market sooner or later unless it doesn´t really believe that the dollar´s strength will last for long.
The US exports consist of debt, so the higher the dollar the more they will be able to export their debt (since people across the world would value the US dollar dearer). The US international corporations trade in local currency, though their prices are still mostly bound to the US dollar exchange rate, thus their revenue stream may decline due to competition, but the degree of this decline remains to be seen...
The accounts they send the SEC and the market are squared in dollars so the higher the dollar the less worth in dollars their foreign revenue has to be on the books back home in the U.S.. Unless they have some cookery to cover that. Remember; a rising dollar imports deflation into the U.S.
IT won't collapse anytime soon in this year
In fact, some people dollar is stronger
In fact, some people dollar is stronger
there is a chance that the euro might collapse first, seeing the recent trend, dollar seems strongher, i voted no
I agree. Europe need so much oil. A weak euro is not good for Europe.
Well it is good for export.
Right, and the strong dollar is terrible for U.S. exports. Also the higher the greenback the fewer dollars U.S. multinationals (which lead the stock market) get to book as revenue and profits back home. Which has to hit the stock market sooner or later unless it doesn´t really believe that the dollar´s strength will last for long.
The US exports consist of debt, so the higher the dollar the more they will be able to export their debt (since people across the world would value the US dollar dearer). The US international corporations trade in local currency, though their prices are still mostly bound to the US dollar exchange rate, thus their revenue stream may decline due to competition, but the degree of this decline remains to be seen...
there is a chance that the euro might collapse first, seeing the recent trend, dollar seems strongher, i voted no
I agree. Europe need so much oil. A weak euro is not good for Europe.
Well it is good for export.
Right, and the strong dollar is terrible for U.S. exports. Also the higher the greenback the fewer dollars U.S. multinationals (which lead the stock market) get to book as revenue and profits back home. Which has to hit the stock market sooner or later unless it doesn´t really believe that the dollar´s strength will last for long.
there is a chance that the euro might collapse first, seeing the recent trend, dollar seems strongher, i voted no
I agree. Europe need so much oil. A weak euro is not good for Europe.
Well it is good for export.
If the USD were to collapse, then you'd have bigger and nastier things to worry.
Not if when
If the USD were to collapse, then you'd have bigger and nastier things to worry.
Eur and usd are imverse.. After euro is removed usd will be at peak prob 150ish then usd will goto 0
The Euro has already collapsed, is now on the rebound. The Dollar has ballooned, is now correcting. Nothing unusual really, it´s just the market.
I think it will not collapse in 2015, but I guess in the next few years. Before this happens, the Euro will go down first.
Behold, I bring you the solution:
How to fix the global economic meltdown https://www.youtube.com/watch?v=ExOj7NtcSwo
How to fix the global economic meltdown https://www.youtube.com/watch?v=ExOj7NtcSwo
I don't think usd can collapse any soon. Eur and chf are riskier right now
Exactly. The collapse potential of the Euro is much much higher right now than the USD. With that being said though in terms of real price inflation in the US that may go up very quickly in the short term if china starts dumping their USD back into our economy in exchange for goods and precious metals.
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